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MEMA Throws Support Behind Legislation that Delays Imposition of Tariffs

Date: March 15, 2019

The Motor & Equipment Manufacturers Association (MEMA) applauds a bipartisan effort to study the automotive industry and its role in the American economy before tariffs that impact the industry can be imposed.

The Automotive Jobs Act, introduced March 13 by Representatives Terri Sewell (D-Ala.) and Fred Upton (R-Mich.) would delay on any tariffs on automobiles and auto parts until the U.S. International Trade Commission (ITC) conducts a study of the well-being, health, and vitality of the U.S. automotive industry. 

The Trump administration conducted an investigation on automobiles and automotive parts under Section 232. This investigation could lead to the imposition of tariffs, which would adversely impact the success and growth of American manufacturing businesses by placing manufacturers at a competitive disadvantage to their global counterparts and eroding U.S. jobs. Such actions would weaken our nation’s economy by harming U.S. manufacturers of vehicles and vehicle parts and would deter U.S. investments in new innovative technologies. In addition, tariffs on imported parts will lead to increased repair costs, forcing U.S. consumers potentially to forgo necessary repairs and routine maintenance. Foregoing maintenance undermines the fundamental operating safety and efficiency of consumers’ vehicles.

MEMA continues to support this and other congressional efforts to address the administration’s use of national security to impose tariffs on materials and products essential to the competitiveness of U.S. companies. This legislation, as well as other bills, calls for common-sense fixes to the Section 232 provision that currently allows the president to unilaterally impose tariffs citing national security.

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